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Title 8: Medicaid Page 97 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources Revised September 13, 2024 Burial Contracts

Burial Contracts (Cont.) Burial Contracts – Transfer of Assets

Transfer of Asset Penalty Amount

Revocable burial contract funded by irrevocable burial funds Yes Penalty is the amount of the irrevocable burial funds. If client changes the revocable burial contract to irrevocable, the transfer of assets penalty can be expunged as of the first of the following month.

Revocable burial contract funded by life insurance policy irrevocably assigned to funeral home (either ownership or beneficiary) Yes Penalty is the amount of cash value and dividends of the life insurance policy. If client changes the revocable burial contract to irrevocable, the transfer of assets penalty can be expunged as of the first of the following month.

Irrevocable burial contract funded with irrevocable burial funds OR assigned life insurance policy (either ownership or beneficiary) If the amount of contract is:

 Less than average cost of funeral in Iowa. No None